Contractors Must Obtain Peddler Permits for Door-to-Door Sales

Door to door sales expose contractors to significant risks if their "peddlers" fail to get properly licensed and follow the rules in each Minnesota town and city.

Solicitors and the companies they represent can be fined up to $700 and temporarily barred from door to door sales if cited. Worse, the state may try to classify independent sales people as employees for Worker's Compensation and Unemployment Benefits if the individuals complete the license applications incorrectly. Many applications specifically ask for proof of Worker's Compensation compliance.

Ask Minnesota Construction Law Services

To be safe, call Minnesota Construction Law Services today for legal and business guidance. We can review your documents, peddler licensing procedures and training to ensure you grow safely.

Whether your sales representatives are independent contractors or employees, it is your responsibility that they follow all laws affecting residential contractors in Minnesota. Scrutiny (and enforcement) is greatest in spring and after storms.

Ensure that your sales team complies with local solicitation ordinances and that they use documents that comply with state and federal law, including providing two copies of the three-day right to cancellation notice. The classification of an individual soliciting on a company's behalf could determine whether or not the company would be subject to a penalty.

Separate peddler licenses for each community

Every community in Minnesota is free to create and enforce its own licensing requirements for peddling and door-to-door selling. Most of the 218 incorporated municipalities in the metro area require a peddler's permit or registration. In recent years, many municipalities have shifted from annual permits to shorter-term permits that range from one day to six months.

Some ordinances are directed at the company, while others apply to the individual sales person. If a sales rep is cited for violating the local ordinance, your company could be subject to a fine and prohibited from soliciting in that community for an extended period, closing the door on new business there. Cities often instruct residents to call 911 if a door-to-door sales person fails to display proper identification and registration. If neighbors see a squad car respond, your brand's reputation will suffer.

The City Clerk's office typically issues peddler licenses and publishes forms online. Each applicant is subjected to a criminal background check. Visit the municipalities' websites for details. And contact Minnesota Construction Law Services so you are confident your neighborhood canvassing opens doors to new business rather than avoidable risks.

William E. Gschwind, MBA | Attorney at Law

Member: Twin Cities North Chamber of Commerce and chair the chamber’s Public Policy Committee, NARI of Minnesota (National Association of the Remodeling Industry), MSBA (Minnesota State Bar
Association) and member of MSBA Practice Management and Marketing Council, ABA (American Bar Association) where I am an active Law Practice Management section member appointed to serve on
the Education Board and the eLawyering Task Force.